EX-12.1 3 hii-ex121.htm RATIO OF EARNINGS TO FIXED CHARGES HII-EX12.1


Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES


 
 
Three Months
Ended March 31
 
Year Ended December 31
($ in millions)
 
2012
 
2011
  
2011(2)
 
2010
 
2009
 
2008(1)
 
2007
Earnings:
 
 
 
 
  
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
 
$
50

 
$
70

  
$
6

 
$
206

 
$
176

 
$
(2,394
)
 
$
411

Amortization of Capitalized Interest
 
—

 
1

  
3

 
4

 
3

 
3

 
3

Interest Capitalized
 
(1
)
 
—

  
(2
)
 
(3
)
 
(8
)
 
(4
)
 
(3
)
Fixed Charges:
 
 
 
 
  
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized, including amortization of debt issuance
 
31

 
15

  
106

 
43

 
44

 
44

 
45

Portion of rental expenses on operating leases deemed to be representative of the interest factor (3)
 
3

 
3

 
15

 
15

 
16

 
14

 
13

Total Earnings
 
$83
 
$89
  
$
128

 
$
265

 
$
231

 
$
(2,337
)
 
$
469

Fixed Charges:
 
$34
 
$18
  
$
121

 
$
58

 
$
60

 
$
58

 
$
58

Ratio of earnings to fixed charges
 
2.4
 
4.9
  
1.1

 
4.6

 
3.9

 
—

 
8.1


(1) For the year ended December 31, 2008, the company’s earnings were insufficient to cover fixed charges by $2,395 million.
(2) For the year ended December 31, 2011, the company recorded a non-cash goodwill impairment charge of $290 million.
(3) The proportion of rental expense deemed to be representative of the interest factor is one third.